Alexandra’s ‘The Warehouse’ building sells in hot market
10 Limerick Street tenanted by The Warehouse sells to new owner
May 2021 – 10 Limerick Street in the Central Otago township of Alexandra has been snapped up after a short negotiation campaign.
The large format commercial property sold fully leased, with well established tenant ‘The Warehouse’ providing solid returns offering a passive investment to the new purchaser.
JLL New Zealand Senior Directors Euan Stratton and Hamish Stallworthy were the sole brokers for the successful campaign that drew significant interest for the trophy asset currently occupied by one of New Zealand’s strongest retail operators.
The prominent building comes with huge profile and wide street frontage on both Limerick and Talbert Streets, comprising a total floor area of 3,655sqm in addition to 120 carparks on a 3,783sqm freehold title.
After a short marketing campaign the property sold to its new owner, who will take possession at the end of the month.
“An appealing offering to any astute investor, The Warehouse Limited have just re-signed a new seven-year lease with further rights of renewal which indicates confidence in the retail environment. The current income is $350,000 net plus GST,” says Stratton.
“There was heated interest in the property throughout the campaign, with enquiries mainly from the lower South Island and a few interested parties from Auckland.
“While there have undoubtedly been headwinds for retail in New Zealand, Alexandra has been among one of the more stable markets that we monitor with both retail rents and yields remaining consistent and this is a trend we expect to continue.”
Stallworthy says the Alexandra Warehouse benefits from being in a ‘hub’ location.
“The store provides a bulk retail ‘one stop shop’ to the surrounding district including Clyde, Omakau, Lauder, Oturehua, Roxburgh, Ranfurly and Palmerston on the East Otago coast,” says Stallworthy.
“Having a blue-chip tenant with a new long-term lease in position with further rights of renewal made this property one not to be missed in Alexandra’s already tightly-held commercial precinct.
“Prior to going to market the building underwent a number of improvements including new LED lighting to help reduce the overall upkeep costs for the tenant.”
Alexandra, in Central Otago, lies on the banks of the Clutha River and at the junction of State Highway 8 and State highway 85. Alexandra is known as the hottest, driest and coldest town in New Zealand, and it’s because of these extremes that Alexandra is a popular destination for national and international visitors.
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.6 billion in 2020, operations in over 80 countries and a global workforce of more than 91,000 as of March 31, 2021. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.